12
Setting Product
Strategy
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What is a Product?
Figure 12.1 Components of the
Market Offering
Figure 12.2 Five Product Levels
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Product Classification Schemes
Durability
Use
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Durability and Tangibility
Nondurable goods
Durable goods
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Consumer Goods Classification
Convenience
Unsought
Shopping
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Industrial Goods Classification
Materials and parts
Capital items
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Product-Mix Width and Product-Line Length for Proctor&
Gamble Products
PRODUCT-LINE
LENGTH
Product-Mix Width
Detergents
Toothpaste
Disposable
Bar Soap
Diapers
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Product Differentiation
Product form
Features
Customization
Performance
Conformance
Durability
Reliability
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Service Differentiation
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and
repair
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Line Stretching
Down-Market Stretch
Up-Market Stretch
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Two-Way Product-Line Stretch:
Marriott Hotels
Quality
Economy
Standard
Good
Superior
P
ri
ce
P
ri
ce
High
Above
average
Average
Low
(Vacationers)
Fairfield Inn
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What is the Fifth P?
Packaging
, sometimes called the 5
th
P,
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Factors Contributing to the
Emphasis on Packaging
Self-service
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Packaging Objectives
Identify the brand
Convey descriptive and persuasive
information
Facilitate product transportation and
protection
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